Steele may lose control over RNC purse strings.

After becoming RNC Chairman, Michael Steele boldly predicted the Republicans would “win” the contest for an open congressional seat in New York. He was wrong. Steele also threatened to withhold campaign funds from Sen. Arlen Specter, after Specter voted for Obama’s economic recovery package. That helped fuel Specter’s departure from the Republican Party. Now, some members of the RNC are taking matters into their own hands and trying to limit further damage that Steele can do to their party. The Washington Times reports:

A battle over control of the party’s purse strings has erupted at the troubled Republican National Committee, with defenders of Chairman Michael S. Steele accusing dissident RNC members of trying to “embarrass and neuter” the party’s new leader.

Randy Pullen, the RNC’s elected treasurer, former RNC General Counsel David Norcross and three other former top RNC officers have presented Mr. Steele with a resolution, calling for a new set of checks and balances on the chairman’s power to dole out money.

Steele has rejected calls for his resignation. “Not me Baby! Nuh-uh. Not happening. No way, no how!” he said in March.